Salesforce.com 2016 Annual Report Download - page 97

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As of January 31, 2016, the following marketable securities were in an unrealized loss position (in
thousands):
Less than 12 Months 12 Months or Greater Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Corporate notes and obligations .... $531,258 $(2,472) $48,047 $(511) $579,305 $(2,983)
U.S. treasury securities ........... 50,434 (56) 0 0 50,434 (56)
Mortgage backed obligations ....... 61,055 (274) 4,780 (49) 65,835 (323)
Asset backed securities ........... 135,917 (199) 5,490 (27) 141,407 (226)
Municipal securities .............. 4,553 (4) 1,959 (2) 6,512 (6)
U.S. agency obligations ........... 5,989 (6) 0 0 5,989 (6)
Foreign government obligations .... 5,523 (5) 0 0 5,523 (5)
$794,729 $(3,016) $60,276 $(589) $855,005 $(3,605)
The unrealized loss for each individual fixed rate marketable securities was less than $115,000. The
Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on
its evaluation of available evidence as of January 31, 2016. The Company expects to receive the full principal
and interest on all of these marketable securities.
Fair Value Measurement
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are
classified within Level 1 or Level 2 because the Company’s cash equivalents, marketable securities and foreign
currency derivative contracts are valued using quoted market prices or alternative pricing sources and models
utilizing observable market inputs.
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation
methodologies in measuring fair value:
Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2. Other inputs that are directly or indirectly observable in the marketplace.
Level 3. Unobservable inputs which are supported by little or no market activity.
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